Feb 4 (Reuters) – The new chief executive of Nestle is planning a strategic overhaul to refocus the sprawling multinational around four product categories, the Financial Times reported on Wednesday citing people familiar with the matter.
Philipp Navratil, who was appointed last year after the firing of his predecessor, is preparing to organise the company around the new “pillars” of coffee, petcare, nutrition and health, and food and snacking, according to the report.
Reuters could not immediately verify the report. Nestle declined to comment.
Navratil has been looking to sharpen the company’s focus, potentially putting parts of an empire that spans vitamins, pet food, coffee, confectionery, bottled water and more on the chopping block.
The Swiss maker of KitKat chocolate bars and Nespresso coffee said in October it would cut 16,000 jobs – or about 5.8% of its 277,000 employees – in 2025.
Navratil was catapulted into the top job at a time Nestle has struggled to maintain momentum amid a global economic slowdown that has pushed consumers toward cheaper alternatives.
Nestle is currently organised by region ranging from Americas, Europe, Asia, Oceania and Africa, and six categories known at the company as “strategic business units,” the FT reported.
The four new product groupings could lay the groundwork for a formal reorganisation at the group, it added.
(Reporting by Hyunsu Yim in Barcelona; Editing by Tom Hogue and Shri Navaratnam)
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